• Money lending without license is a crime
• Interest rate should not exceed more than 3%
• Public advised to borrow only from institutional and licensed money lenders
KOHIMA, DECEMBER 12 (DIPR): The District Administration Kohima on Tuesday clamped down on unauthorized money lenders, while expressing concern that it has been receiving numerous complaints on lending of money by un-licensed money lenders, charging exorbitant interest rates and cases of threat, intimidation and forceful seizure of moveable/immoveable properties.
Stating it as violation of the Nagaland Money Lenders Act 2005, Deputy Commissioner Kohima, Rajesh Soundararajan has issued a notice for attention of general public and unauthorized money lenders that: “As per Section 24 of the Nagaland Money Lenders Act 2005 whoever carry on money lending business without a license shall be punishable with imprisonment for a term which may extend to six (6) months or with fine which may extend to Rs. 2500 or with both.”
As per the relevant sub section of Section 7, no money lender can charge interest at a rate exceeding more than 3 (three) percent above the prevailing average bank rates of interest on loans and rate of interest shall be per annum simple interest on the principal amount of the loan. Under Section 16 (1) (b), any money lenders whether licensed or not who receives interest higher than the rate prescribed under Section 7 or at the rate higher than the rate shown in the accounts shall be punishable with imprisonment for term which may exceed to one year or with fine which may extend to five thousand rupees or with both.
Any aggrieved person can file a money suit in respect of any offence like excess charge of interest, no proper maintenance of records, failure to keep full and detailed description of each of the articles taken in pawn by pawn broker, the notice stated.
In case of criminal offence arising out of the Nagaland Money Lenders Act 2005 like threat, intimidation, assault, abduction, kidnap, forceful seizing of moveable/immoveable property etc; criminal complaint can be lodged under section 20 of the said act before the competent court of judicial magistrate. Additionally, it is advisable for general public to borrow only from institutional and licensed money lenders.
The DC also informed that there are specific loan scheme for various section i.e. farmers, students, entrepreneurs and skilled workforce etc. Institutional creditors provide larger amount of loan on lower interest rate without any guarantee.
The notice further informed all concerned that any persons/groups/society violating the laid down rules and regulations are reliable to be punished under relevant sections as mentioned above.
.JPG)
